Rate setting and regulation: In everyone’s interests?

Madeleine de Remusat and Katharine Harle (Associates) are members of SNR Denton’s Financial Markets Disputes and Financial Services and Funds practices in London. Contact them on +44 (0)20 7246 7000 (madeleine.deremusat@snrdenton.com or katharine.harle@snrdenton.com). © 2012 SNR Denton.

The Financial Services Authority’s (FSA’s) final notice imposing a financial penalty of £59.5 million on Barclays for LIBOR and EURIBOR manipulation has led to intense public scrutiny. The FSA’s accompanying announcement makes it clear that the final notice was the product of a cross-border investigation with US authorities including the Commodity Futures Trading Commission (CFTC). A separate announcement confirmed that the CFTC brought attempted manipulation and false reporting charges which Barclays admitted and settled for an agreed penalty of $160 million. In this article, Madeleine de Remusat and Katharine Harle of SNR Denton look at the FSA’s final notice, interest-rate setting and the potential consequences.